Askari Rice Finance

Overview

Strengthening Rice Mills, Empowering Growth!

Askari Rice Finance is a tailored seasonal financing solution designed to support rice mills in managing their paddy procurement and related overhead expenses. Based on the mill’s past performance and milling capacity, this facility ensures that rice mills have timely access to working capital, enabling them to meet their seasonal financial demands efficiently. By providing flexible and reliable support, Askari Bank helps rice mills strengthen their operations and contribute to Pakistan’s vital rice sector.

Strengthen your rice mill operations today with Askari Rice Finance, reliable support for every season.

Key Features

Category	Cash Finance (CF)	Running Finance (RF)
Purpose	Cash Finance (CF) To meet working capital requirements of Rice Husking Mills for procurement of paddy as per milling capacity. Cash Finance (CF) Trading To meet working capital requirements for off-season. Rice Mills are allowed for procurement of other commodities (except wheat) for trading purpose.	Running Finance (RF) To meet working capital requirements of Rice Husking Mills i.e. transportation, salary & wages, utility and other administrative expenses etc. Running Finance (RF) Trading To meet working capital requirement for trading purpose.
Max. Financing Amount (RF & CF)	ME: Up to Rs. 300M (Maximum) SE: Up to Rs. 100M (Maximum)
Markup Rate	Competitive Markup Rates	Competitive Markup Rates
Processing Fee	Processing fee @0.15% of total limit(s) processed/approved or Rs. 25,000/- (whichever is higher). Other legal/evaluation/documentation/service charges at actual will also be charged.
Tenor	Cash Finance Max 270 Days or Clean-up corridors, whichever is earlier. Cash Finance Trading Max 180 days Markup quarterly on full adjustments, whichever is earlier.	Running Finance One Year Running Finance Trading One year
Insurance	Property (building only) and stock insurance in favour of AKBL

Eligibility Criteria

Age of Applicant

Minimum 20 years (in case of sole proprietorship)
Maximum 65 years at the time of application
This criteria is not applicable if the business concern is a partnership or limited company
This age can be relaxed in case of effective succession planning is available.

Business Age

Minimum 3 years operating history of business

Account Turnover

Min 50% of the applicant’s sales to be documented through account turnover with bank(s).

Electricity Bill

The electricity bill payment history should be regular

Security/Collateral

Cash Finance	Running Finance
CF limit fully secured against pledge of paddy with 25% margin and rice with 20% margin or as per SBP requirement/AKBL Credit Procedures Manual (whichever is higher). No by-products like broken rice, husk and powder are acceptable under pledge. CF Trading CF limit fully secured against pledge of other commodities (except wheat) with margin as per AKBL Credit Procedures Manual or as per SBP requirement (whichever is higher).	RF Hypothecation of company’s / mill’s receivable as per bank policy RF trading Hypothecation of company’s / mill’s receivable as per bank policy
In case where finance is secured primarily against pledge of stocks, units to obtain additional collateral, which should be 25% of limit/finance amount. 25% of limit to be secured through Market Value (MV) of the mortgaged Residential / Industrial / Commercial Property (Land & Building only).	Preferably Effective Mortgage of Residential / Industrial / Commercial property (Land & Building only) with 25% margin on FSV and third-Party property 30% margin over FSV as per AKBL Credit Procedures Manual. Or Effective Mortgage of Residential / Industrial / Commercial property (Land & Building only) with 25% margin on MV OR.
In case of cash collateral (AKBL Certificates/lien over account, excluding ASDA), 25% of the limit amount can also be accepted independently.	Cash collateral in shape of DSCs/ AKBL certificates / lien over account with 10% margin.
Combination of both property & cash collateral with margins as described above.	Combination of both property & cash collateral with margins as described above.
Personal Guarantees of Borrower/Partners/Directors of the Company.	Personal Guarantees of Borrower/ Partners/Directors of the Company.
In addition to the above collateral, any other security deemed necessary, as per bank policy.	In addition to the above collateral, any other security deemed necessary, as per bank policy.

Documents

Documents Required to apply for Askari Rice Finance

Documents required at the time of processing

Application form for SE/ME along with copy of CNIC
Copies of company registration documents
Annual/semi-annual financials (audited or in house as per SBP requirement)
Electricity bill as evidence of rice mill being functional
Copy of security documents for legal opinion etc.
Legal opinion and evaluation report by bank’ approved lawyer/ evaluators respectively
Bank statement Any other document required by RM/TL for credit proposal assessment as per bank policy
An undertaking to be obtained from borrower that the mill operations were not run on commissioning basis (fully or partially) during last six months and in future till the adjustment of loan.
An undertaking to be obtained from borrower that the subject financing will be used only for intended purposes.

Processing of loan

SME team at designated branches will process “ARF” as per approved Product Program

How to Apply

To view the flyer of Askari Rice Finance, please click here
To view the instruction guide for Applying SME Financing, please Click Here
To view Frequently Asked Questions related to Askari Rice Finance, please Click Here

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No documents available.